On Thursday, China’s Evergrande Group, formerly the nation’s second-largest property developer, submitted a bankruptcy petition in New York.

The troubled company heavily relied on borrowing and defaulted on its debts in 2021, triggering a significant property crisis within China’s economy, the reverberations of which are still being felt.

Evergrande sought Chapter 15 bankruptcy protection, enabling a U.S. bankruptcy court to intervene when an insolvency case spans international borders, CNN reported.

Chapter 15 bankruptcy is designed to facilitate cooperation among U.S. courts, debtors, and foreign courts engaged in cross-border bankruptcy proceedings.

Evergrande has not yet provided a response to CNN’s inquiry for comment.

Written by staff